Zomato rival Swiggy integrates InsanelyGood with Instamart

Zomato rival Swiggy has announced the merger of its premium grocery service, InsanelyGood, with its quick commerce vertical, Instamart. 

The merger move comes after InsanelyGood, initially launched as a standalone app, was integrated into Swiggy's main app last July, receiving its own dedicated space alongside other Swiggy services.

The decision to merge aims to streamline operations and reduce cash burn. InsanelyGood has scaled down its operations from six cities to only Bengaluru to curb expenses.

The Journey of InsanelyGood

In March last year, InsanelyGood, formerly known as SuprDaily, was rebranded and integrated into Swiggy's ecosystem. Swiggy had acquired SuprDaily in 2018, and by 2021, it was fully integrated as a unit under Swiggy, marking the company's entry into direct competition with other grocery delivery services like BigBasket's BB Daily and Amazon Fresh. 

InsanelyGood was known for its premium grocery offerings and had garnered significant consumer appreciation for its high-quality assortment.

Leveraging the growing quick commerce segment 

The integration of InsanelyGood into Instamart is seen as a strategic move to leverage the growing quick commerce segment. Swiggy's co-founder, Phani Kishan, who also co-founded SuprDaily, took over the leadership of Instamart last year.

The merger is expected to enhance Instamart's offerings by including premium groceries, which will now be available through a separate entry point on Instamart. Swiggy aims to scale this service across Bengaluru, capitalizing on the consumer love for InsanelyGood's high-quality groceries.

Diversifying product offerings

The development is part of a broader trend where quick commerce companies are diversifying their product offerings, venturing into new categories like apparel and electronics.

Swiggy itself has been experimenting with selling a variety of products through its Swiggy Mall segment. The merger comes at a time when the company is preparing for its IPO, with plans to file draft papers in the coming months.